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Developers to auction real estate

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Various developers in Seattle did something similar after the US housing bubble popped.  Their original asking prices were so high that the discounts weren’t necessarily good deals when the Price/Rent ratio was taken into account.  Similar to what I see in your linked article is that there are undisclosed reserve prices and you can bet that at the reserve price, they’re still making a profit.  Furthermore, when I saw it happen in the past, it was usually carefully selected units with some sort of drawback such as a low floor, blocked view or wonky floor plan.

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